[Bone] [Audio Cape] Static over audio with fresh systemd-image build

Howdy,
I just bitbaked a new systemd-image (Linux 3.8.10) in anticipation of receiving my Black on Monday. I booted it up on an original BB with an audio cape plugged in. I installed alsa-utils and aplay’d a wav file of a man speaking I’ve been using for testing. The voice was completely covered with static. I changed some of the levels in alsamixer and it got a bit better but I could never get the static to completely go away to where it would play loud, clean audio. I booted my old 3.2.42 image SD and it played wonderfully at any volume. Any idea what the issue could be with this fresh build?

One other thing, ‘shutdown -h now’ results in kernel panic.

[ 1028.286765] (NULL device *): gadget not registered.

[ 1028.293009] Disabling non-boot CPUs …

[ 1028.297095] Power down.

[ 1028.299702] System will go to power_off state in approx. 2 secs

[ 1028.309049] Kernel panic - not syncing: Attempted to kill init! exitcode=0x00

Thank you,
Nick